Court restrains Public Limited company from holding EGM

Delaying winding up proceedings of a public limited company, a city civil court here has restrained SAAG RR Infra Limited from conducting the extraordinary General Meeting of creditors on May 31.
Granting interim injunction, the XIV assistant judge, who is also vacation judge of the civil court, said documents showed that the company had not given 21 days notice before conducting the meeting.
The order was passed yesterday on an application by Swapna Jain of Hyderabad, one of the creditors.
Jain said she had advanced Rs one crore loan to the company in 2010 and it had failed to repay either the principal or interest for several months now.

After learning that the company had convened the general meeting of creditors and shareholders to obtain their consent for winding up the company, she filed the application, saying intimation to creditors was sent very late and in violation of Companies Act, 1956.
Noting that the notices had been sent late deliberately, she said the meeting proposed to cover up certain 'misdeeds' of the company promoters who had been handling the public money of investors and creditors.

She alleged that the parent company based in Malaysia too adopted a similar modus operandi to first divert public funds, and then wind up.

Malaysia-based SAAG Consolidated, which is the holding company, was reprimanded and directed to pay huge fine for flouting rules there, Jain said.
She said she had filed the present petition to prevent winding up of a company without due intimation to creditors and investors.